Westlife Development soars over 9% after firm says sold the most in June quarter

Shares of Westlife Development — the master franchisee of McDonald's restaurants in West and South India — climbed over 9 percent after the company said sales in the April-June quarter hit an all-time high.

At 1:05 pm, the stock was trading at Rs 590.4 an increase of  9.79 percent from the previous close on the BSE.

The company said more than 55 percent of the overall business growth for the quarter came through digital channels.

The company reported total revenue of Rs 538 crore, a jump of 108 percent from the corresponding period a year ago. On McDelivery App, Westlife saw its biggest quarterly revenue, with more than 18.5 million total downloads.

Westlife's average annualised sales per store have exceeded Rs 6 crore for three consecutive quarters, the company said in a regulatory filing.

At the operation level, the EBITDA margin stood at 17.1 percent. Profit after tax (PAT) was at Rs 55 crore for the June quarter. The company witnessed a 97 percent year-on-year growth in same-store sales growth (SSG). The restaurant operating margin (ROM) grew 4.5 times to 21.6 percent.

“For us dine-in has recovered extremely well, year on year it has grown over 420 percent. If you look at it from pre-COVID, then it has grown by 15 percent. While delivery and convenience grew by 150 percent from pre-COVID and year on year it was up by 13-14 percent," Amit Jatia, Vice Chairperson,  Westlife Development told CNBCTV18.

The company added five restaurants in the three months, with a focus on smaller and growing cities. Westlife expects to open 35-40 new restaurants in FY23 and more than 200 in the following three to four years.

“We have about 260 McCafe’s, the idea is to first take it to 330 across the whole restaurant base and then as we add 200 new restaurants, we will have every single one of them to McCafe. So you will see McCafe’s numbers double to over 500," added Jatia